The New South Wales Rural Fire Service (RFS) says at least 33 homes have been lost in a bushfire west of Coonabarabran, which also damaged the Siding Spring Observatory.
The fire in the Warrumbungle National Park in the north-west of the state has burnt out nearly 40,000 hectares and has a 100-kilometre-wide front.
About 100 people living in the area have been forced to evacuate their homes as officials warn the amount of properties lost could rise.
A watch-and-act alert has been issued for the fire which is burning in a northerly direction about one kilometre south of Bugaldie.
Inspector Brett Lachlan from the RFS says properties to the west of the Warrumbungle National Park may come under threat if firefighters cannot contain the fire.
"We have a large number of fire trucks obviously at Bulgaldie, prepared for whatever might eventuate," he said.
"Finalise property preparations and things like that, it is still a very dynamic fire, the situation's going to continue to evolve."
Most residents have been evacuated to Baradine and Coonabarabran.
The RFS has confirmed 33 properties and more than 50 sheds have been destroyed, as well as machinery and there have been extensive stock losses.
The NSW Government has launched a website with information for affected communities. Click here
RFS Deputy Commissioner Rob Rogers says the fire burned on Sunday with a ferocity not seen for many years in New South Wales.
We know people are hurting, we know people have lost homes and we know homes are more than bricks and mortar.
We know it's very important... but not as important as their life.
RFS Deputy Commissioner Rob Rogers
"The smoke plume of that fire extended some 14km into the air and even prevented us from getting aircraft overhead because of just how dangerous and bumpy the conditions were," he said.
"Embers were being blown ahead of the fire and starting a new fire some 5km ahead and it became very apparent early in the piece that there was just absolutely no stopping that fire and it was simply too unsafe to leave people."
Mr Rogers says those who were removed from the area should not try to return until authorities deem it safe.
"At this point in time, we ask for their patience," he said.
"We know people are hurting, we know people have lost homes and we know homes are more than bricks and mortar, we know that it's their possessions and memories, we know it's very important... but not as important as their life."
Mr Rogers says crews are throwing every resource at the fire but he cannot guarantee it will be contained before warm weather returns later in the week.
Meanwhile, a watch and act alert has been issued for another fire, north-east of Coonabarabran, which has closed the Newell Highway.
The RFS says the two-hectare blaze is burning out of control but is not threatening properties at this stage.
And a fire near Eugowra, east of Forbes, which jumped containment lines this afternoon, has been brought back under control.
There were concerns it would reach the nearby Nangar National Park but crews are working to strengthen containment lines.
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Map: Warrumbungle National Park fire map
Eighteen staff from the Siding Spring Observatory had to be led to safety at the height of the blaze last night.
The observatory, run by the Australian National University (ANU), is the country's largest optical astronomy research facility and was deliberately located in the Warrumbungle Ranges for the altitude, clear air, and low humidity.
ANU acting vice-chancellor Erik Lithander says five buildings, including cottages that house staff, have been destroyed, but fortunately the facility's 15 telescopes remain intact.
"First and foremost, the major relief is that all the staff were brought safely down from the mountain," he said.
"The fact that the telescopes seem to be undamaged is significant because this is the largest observatory site in Australia - it's the home to the largest optical telescope in Australia."
The university says it has about $80 million worth of assets on the site and they are fully covered by insurance.
Dr Lithander says there will be closer inspection of the site when it is deemed safe.
"We do not yet know that impact the extreme heat and the ash has had on the telescopes themselves, and we won't be able carry out that assessment until we can enter the buildings and inspect the inside of them," he said.
ANU staff are travelling from Canberra to take stock of the fire's impact.
The astronomer in charge of the observatory, Professor Fred Watson, has been monitoring the situation from Norway.
He said lessons were learnt from the fires which destroyed the Mount Stromlo observatory in Canberra in 2003.
"For example there was a program of undergrowth clearing. There was a program of fitting ember screens to all the windows and all the buildings on the observatory, which means that you can't get embers penetrating into the buildings and setting fire from the inside, which is what happened at Stromlo," he said.
Rural Fire Service Superintendent Allyn Purkiss says extra crews are being brought in from across the state today to help fight the Warrumbungle fire.
"We'll work into the day to keep properties protected around Bugaldie," he said.
"The fire as I said was running under some very strong winds up to about two o'clock this morning when the winds dropped and the fire conditions slowed right down.
"Rural properties between Baradine and Coonabarabran and between Coonabarabran and out towards Siding Springs, certainly those people were evacuated."
Two evacuation centres were set up at the Tattersalls Hotel in Baradine and the Coonabarabran Bowling Club.
'Fire storm in the sky'
Donna Burton owns one of the properties that was evacuated and does not know whether her home has been destroyed.
She says as she was leaving, the flames were already on her property.
"Just the way the wind changed, it just became the most frightening thing I think I've seen... or I want to see," she said.
"You could see a fire ball. It was like - you saw the darkness, you saw the smoke, you smelt it - it was almost like a mushroom cloud, but you could hear the crackling and the flames.
"It was literally a fire storm in the sky."
Large parts of NSW have been affected by bushfires this past week, brought on by searing temperatures and wild winds.
More than 170 fires continue to burn across the state and at least 30 of them are uncontained.
Firefighters in the state's north-west worked through the night to strengthen containment lines around a grass fire that had been threatening homes at Bundabarina, west of Collarenebri.
That fire has now been downgraded to advice status.
Superintendent John Cook says the cooler overnight conditions helped crews get the upper hand.
"We have no properties that have been lost and we have no properties that are under threat," he said.
"There was a stage where we were concerned about the township of Collarenebri, but with the hard work that the volunteers did we were able to allay the fear of the threat [to] Collarenebri."
Firefighter killed
Firefighters are also working to control blazes in Victoria and Tasmania, while the threat from fires in Central Australia has eased.
In Tasmania, a Victorian firefighter has died while fighting a bushfire on the Tasman Peninsula, south of Hobart.
The man aged in his 60s was found dead yesterday about three kilometres from a fire edge east of Taranna.
He was one of the Victorian firefighters sent to Hobart to assist in controlling the bushfires that have destroyed about 170 properties.
A report is being prepared for the coroner.
The Tasmanian Fire Service and the Premier have expressed their condolences.
"It's the worst news we can get, one piece of news we certainly don't want to get," chief fire officer Mike Brown said.
Fires continue to burn across the state, which has already lost about 170 properties.
Mr Brown has urged vigilance, particularly near the peninsula area.
"With worse weather forecast for later in the week, we hold concerns still for that area."
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A bushfire - named the Redbank fire - burns near the Newell Highway, north-east of Coonabarabran in northern NSW, on January 14, 2013. (Supplied: NSW Rural Fire Service)
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Webcam image of flames from a bushfire encroaching on the Siding Spring Observatory near Coonabarabran in northern New South Wales, January 13, 2013. (Twitter: @cosmicpinot)
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A view from the International Space Station shows bushfire smoke clouds over southern Australia on January 14, 2013. The Great Australian Bight is visible on the left of the image. The photo was taken by ISS engineer Chris Hadfield, who has become known for posting spectacular photos on Twitter. (Twitter: Chris Hadfield)
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A building destroyed by a bushfire sits next to a building untouched by the same bushfire at the Siding Spring Observatory near Coonabarabran in northern New South Wales, January 13, 2013. Read the story (NSW Rural Fire Service)
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Smoke rises from a bushfire near Coopers Road, about 20 kilometres north of Coonabarabran in north-west New South Wales, January 13, 2012. The photo was taken from a nearby visitors centre. (New South Wales Rural Fire Service)
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Smoke from a nearby bushfire rises over houses in Coonbarabran, in north-west New South Wales, January 13, 2012. (Audience submitted: Joel Amiet)
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Aircrane Camille works at the Badgerys Lookout fire near Tallong, near Goulburn in New South Wales, January 9, 2012. (Facebook: NSW Rural Fire Service: Kerry Lawrence )
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Fire fighters work at the edge of a bushfire near Bookham and Yass in southern NSW on January 11, 2013. (AFP: Greg Wood)
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Country Fire Authority (CFA) firefighters mop up a fire in Wallan, Victoria, on January 9, 2013. (AAP: Mark Dadswell)
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A Qld fire fighter back-burns on Bribie Island, north of Brisbane, on January 9, 2013. A bushfire continued to burn out of control on the island. (AAP: Dan Peled)
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A fire fighter surveys bushfire damage on a property near Bookham, near Yass in southern NSW, on January 9, 2013. (ABC News: Skye Manson)
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Bushfire damage on a rural property in Bookham, near Yass in southern NSW, on January 9, 2013. (ABC News: Skye Manson)
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The Dunalley Primary School lies in ruins six days after a bushfire tore through the Tasmanian town, January 10, 2013. (ABC TV: Peter Curtis)
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Opposition Leader Tony Abbott listens to a bushfire briefing at Nowra, on the NSW south coast, on January 9, 2013. Mr Abbott was there as a volunteer with the NSW Rural Fire Service. (AFP: Greg Wood)
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Smoke from a bushfire in New South Wales covers a swathe of land in a photo taken by Chris Hadfield on the International Space Station on January 8, 2013. Mr Hadfield has become well-known for posting spectacular photos of the earth from above while working as an engineer on the ISS. (Chris Hadfield)
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Smoke streams from a bushfire in New South Wales in a photo taken by Chris Hadfield on the International Space Station on January 8, 2013. Mr Hadfield has become well-known for posting spectacular photos of the earth from above while working as an engineer on the ISS. (Chris Hadfield)
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Fallen trees lie on burnt-out land at Bookham, near Yass in southern NSW, on January 8, 2013. (Twitter: Barry O'Farrell)
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What is believed to be a house burns in a fire in Chepstowe near Ballarat on Tuesday January 8, 2013. (ABC TV)
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A firefighter extinguishes a grassfire in Sunbury north of Melbourne on January 8, 2013. (AAP: Julian Smith)
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The charred remains of Carngham Station homestead, destroyed by a bushfire, near Ballarat in central Victoria, January 9, 2013. (ABC TV)
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The ruins of sheds and outbuildings smoulder after a grassfire burned 1,100 hectares at Chepstowe, near Ballarat on January 8, 2013. (ABC TV News: Emily Stewart)
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Flames from the Deans Gap bushfire glow through the smoke covering Princes Highway at Shoalhaven on the NSW south coast on January 8, 2013. (Twitter: NSWRFS)
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NSW RFS firefighters protect a property being impacted by the Dean's Gully fire near the town of Wandandian on January 8, 2013. (AAP: Dean Lewins)
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A clothesline remains standing in a bushfire-hit backyard in Boomer Bay, on the Tasman Peninsula in Tasmania, on January 8, 2013. (ABC News: Tyson Shine)
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A water-bombing helicopter flies through smoke from a bushfire in Bicheno on the east coast of Tasmania, January 6, 2013. Read the story (Audience submitted: Des Hobson)
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NSW Rural Fire Service workers and water-bombing aircraft are on standby at Wollongong Airport on January 8, 2013. (AAP: Dean Lewins)
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Smoke billows from the Yarrabin bushfire in the Cooma Monaro area in southern NSW on January 8, 2013. (NSWRFS: Rob Rogers)
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NSW Rural Fire Service workers and National Parks and Wildlife workers join forces to fill water-bombing aircraft at Jindabyne airfield in south-east NSW on January 8, 2013. (ABC News: Mitchell Estens)
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A NSWRFS fire fighter works to put out a bushfire near Queanbeyan, in southern NSW, on Jan 8, 2013. (Queanbeyan RFS)
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Fire trucks drive on the closed Hume Highway near Tarcutta as bushfires burn in south-west NSW on January 8, 2013. (AAP: Lukas Coch)
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NSWRFS fire fighters work to put out a bushfire near Queanbeyan, in southern NSW, on January 8, 2013. (Queanbeyan RFS)
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A water-bombing helicopter flies near a bushfire burning near Oura, near Wagga Wagga, NSW, on January 7, 2013. (AAP)
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The burnt-out shell of a car sits in front of the Boomer Bay jetty on the Tasman Peninsula in Tasmania after a bushfire on January 7, 2013. (ABC News: Edith Bevin)
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The burnt out remains of one house stand next to a house untouched by the bushfire that swept through Dunalley in south east Tasmania, January 8, 2013. Read the story (ABC News: Damian McIver)
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Members of the Walker and Holmes families shelter in the water next to a jetty at the Holmes' property at Dunalley, south east Tasmania, as a bushfire tore through the area on January 4, 2013. (Audience submitted: Tim Holmes)
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Members of the Walker and Holmes families huddle in the water next to a jetty at the Holmes' property at Dunalley, south east Tasmania, as a bushfire tore through the area on January 4, 2013. (Audience submitted: Tim Holmes)
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Members of the Walker and Holmes families gather on a jetty at the Holmes' property at Dunalley, south east Tasmania, as a bushfire encroached on the waterfront, January 4, 2013. (Audience submitted: Tim Holmes)
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A bushfire encroaches on the waterfront at Dunalley, south east Tasmania, as members of the Walker and Holmes families shelter in the water, January 4, 2013. (Audience submitted: Tim Holmes)
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Nine-year-old Billie Hassett walks through the bushfire-hit Dunalley Primary School in south-east Tasmania on January 7, 2013. (ABC News: Annah Yard)
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Forensic police search for bodies in bushfire-hit Dunalley, south-east Tasmania, on January 7, 2013. (ABC News: Edith Bevin)
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Prime Minister Julia Gillard tours bushfire-affected Dunalley Primary School, in south-east Tasmania, on January 7, 2013. (ABC News: Annah Yard)
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A satellite image shows the smoke from bushfires burning across Tasmania on January 6, 2013. (NASA)
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A Dunalley property is left devastated on January 7, 2013, after bushfires swept through the area in south-east Tasmania. (ABC News: Edith Bevin)
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A NSW Rural Fire Service volunteer works to put out a bushfire at Green Point on the NSW mid-north coast on January 5, 2013. (NSWRFS: Ward Sheehan)
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Sheep wander on a bushfire-devastated property in Dunalley, south-east Tasmania, on January 7, 2013. (ABC News: Edith Bevin)
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Little is left of a Dunalley property on January 7, 2013, after bushfires swept through the area in south-east Tasmania. (ABC News: Edith Bevin)
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Small fires continue to smoulder on a property in Dunalley, south-east Tasmania, on January 7, 2013. Bushfires devastated the community over the previous three days. (ABC News: Edith Bevin)
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The burnt out remains of a building at Connolly's Marsh in south east Tasmania after a bushfire went all the way down to the waterfront, January 6, 2013. (Audience submitted: Lynne Meale)
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Fire burns inside a power pole after it was burnt through by the bushfire in Forcett, south east Tasmania, January 6, 2013. Read the story (Audience submitted: Shane Humpherys)
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Police road block at Forcett, cutting off access to the Tasman Peninsula where bushfires are raging, January 7, 2013. (ABC News: Damian McIver)
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A bushfire burns near houses on a hillside near Sugar Loaf Rd in the Carlton area of Tasmania on January 4, 2013. (Audience submitted: Lynne Meale)
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A massive fireball approaches Dunalley south-east Tasmania, school in foreground was destroyed. (Michael Goldsmith: Tasmania Fire Service)
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Bushfire damage in Boomer Bay, near Dunalley, south-east Tasmania, January 5, 2013. (AAP: Chris Kidd/News Limited Pool)
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Emergency workers assist evacuees with personal and financial counselling inside Hobart Evacuation Centre at the City Hall after bushfires on January 6, 2013. (AAP: Rob Blakers)
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A house damaged by a bushfire is seen from a helicopter in Boomer Bay, near Dunally in Tasmania, January 5, 2013. (AAP/News Limited Pool: Chris Kidd)
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Homes damaged by a bushfire are seen from a helicopter between Dunalley and Boomer Bay, Tasmania, Saturday, Jan. 5, 2013. (AAP Image/News Limited Pool: Chris Kidd)
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At least 65 properties in Dunalley, in Tasmania's south-east, have been destroyed by a bushfire, pictured on January 5, 2013. (ABC: Edith Bevin)
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Chimneys are all that are left standing after a bushfire destroyed a house in Dunalley, Tasmania on January 5, 2013. (AAP/News Limited: Chris Kidd)
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A destroyed building is pictured in the fire-ravaged town of Dunalley in Tasmania's south-east on January 6, 2013. (ABC: Edith Bevin)
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The aftermath of a bushfire that ravaged Dunalley in Tasmania's south-east, pictured on January 5, 2013. (ABC: Edith Bevin)
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A primary school at Dunalley, pictured on January 5 2013, has been burnt down in a bushfire that has also destroyed 65 other properties in the area. (ABC: Edith Bevin)
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A bushfire south of Bicheno, on Tasmania's east coast, burns on January 6, 2013. (ABC: Jonathon Gul)
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Smoke from bushfires obscures the River Derwent at Hobart on January 6, 2013 (ABC: Andrew Fisher)
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The body of a ring tailed possum lies in the aftermath of the bushfire in Forcett, south east Tasmania, January 6, 2013. (Audience submitted: Shane Humpherys)
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A house burns as a bushfire engulfs Connellys Marsh, between Dunalley and Primrose Sands, in south-eastern Tasmania on January 5, 2013. (ABC: Edith Bevin)
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A house burns near the water at Connellys Marsh, between Dunalley and Primrose Sands, in Tasmania's south-east on January 5, 2013. (ABC: Edith Bevin)
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Smoke wafts over Coles Bay Road at the Apsley River crossing in Tasmania's north-east amid a fire emergency, January 5, 2013. (ABC News: Jonathan Gul)
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Tessa Groenewold takes a photograph of smoke billowing from a bushfire as she evacuates Primrose Sands in Tasmania, January 4, 2013. (Audience submitted: Tessa Groenewold)
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Residents watch the blaze get bigger at Primrose Sands, in Tasmania's south-east on January 5, 2013. (Audience submitted: Kate Butterworth)
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A bushfire at Dunalley lights up the skies at nearby Primrose Sands in Tasmania's south-east on the evening of January 4, 2013. (Audience submitted: Kathy Webster)
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Smoke from a bushfire along the Tasman Highway rises above Bicheno, in eastern Tasmania, on January 5, 2013. (Audience submitted: Ken Collier)
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Flames glow through the smoke of the bushfires on the Tasman Peninsula near Hobart, January 4, 2013. (Audience submitted: Ian Stewart)
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The bushfire burns at Dodges Ferry in Tasmania on January 4, 2013. (ABC Open Tas via Twitter)
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Fires burn at Forcett, just east of Hobart, as seen from across Storm Bay, January 4, 2013.
(Audience submitted: Michael Gay Photography)
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The deep red over Mt Wellington in Hobart, Tasmania on January 4, 2013. (Twitter: @SussanSays)
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The view from Hobart towards Dunalley on January 4, 2013. (Ian Lim/DiscoverTasmania)
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Smoke from the Derwent Valley fire creates a dramatic sunset over Mt Wellington, as seen from the Eastern Shore, on January 4, 2013. (Audience submitted: Matthew Fletcher)
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Bushland destroyed by the bushfire burning out of control near Lake Repulse, north-west of New Norfolk in southern Tasmania on January 4, 2013.
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A photo of the fires in Bicheno taken from the Tasman Highway at 5.30pm on January 4, 2013 (Audience submitted: Bridgette Huddlestone)
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Smoke from a bushfire near Forcett towers over Park Beach outside Hobart, Tasmania, on January 4, 2013. (Twitter: Mic and Jo Giuliani)
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Smoke from a bushfire rises over a Hobart neighbourhood on January 4, 2013. (Twitter: Botonaine)
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Smoke rises from a bushfire in the Forcett/Copping area outside Hobart, Tasmania on January 4, 2013. (Rebecca White)
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A helicopter dumps water on a bushfire in Epping Forest, in the Northern Midlands area of Tasmania, on January 4, 2013. (ABC News: Emily Bryan)
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Smoke billows from the bushfire raging near Forcett in south east Tasmania, January 3, 2013. Read the story (Audience submitted: Ian Stewart)
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A large plume of smoke rises from the bushfire raging at Richmond in south east Tasmania, January 3, 2013. Read the story (Audience submitted: Andrew Page)
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A bushfire which began burning near Forcett yesterday is threatening communities around Copping. (ABC: Andrew Fisher)
Gallery:
Bushfires rage across southern Australia